Price elasticity of demand and/or the responsiveness of the public's demand for mental health services as a function of their net price are estimated after insurance benefits are taken into account. By using demand elasticity estimates, critical market characteristics can be identified and explained and market behavior can be predicted. There is a need by lawmakers, insurance companies, unions and professional associations involved in the delivery of health care for having good estimates of mental health service price elasticities as a guide for public policy on health insurance, and to have the information for a comparison of elasticities for mental health services and other health services. The study uses standard econometric methods (arc and point procedures) to estimate elasticities. These methods are applied as secondary analytic techniques to existing data from such sources as insurance company records of benefits and services demanded and standard surveys of hospital and other medical costs. Particular attention is paid to moderating variables, such as sociceconomic indicators, demographics, and locational differences.